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Banyan Strategic Realty Trust's Assets Under Contract for $226 Mil

CHICAGO-The REIT based here has agreed to sell its portfolio of primarily office and industrial properties to privately held Denholtz Associates. The 3.6 million-sf portfolio's most recent vacancy rate was 16%.

By Mark Ruda | Updated on January 09, 2001

CHICAGO-Banyan Strategic Realty Trust, a REIT based Downtown here, has agreed to sell its real estate portfolio for $226 million to privately-held Denholtz Associates. Shareholders can expect to final distributions of about $6.20 per share by the end of 2001 as a result of the sale, scheduled to close April 30. Banyan’s most recent price on the Nasdaq was $5.94 per share.

Despite a 16% overall vacancy for the REIT’s holdings, Banyan Strategic Realty Trust vice president and general counsel Robert G. Higgins said the sale was not a result of underperforming assets. “It was a question of enhancing shareholder value,” Higgins told GlobeSt.com.

The REIT’s new board of directors hired an affiliate of Cohen Financial in early 2000 to study Banyan’s holdings, which total nearly 3.6 million sf and house approximately 480 tenants. In July, it gave Cohen the green light to market the portfolio. Cohen told the board the best course of action was to sell the entire portfolio to one buyer rather than piecemeal to multiple buyers. In October, a buyer was found.

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